Time To Worry? Analysts Just Downgraded Their BlackSky Technology Inc. (NYSE:BKSY) Outlook

Market forces rained on the parade of BlackSky Technology Inc. (NYSE:BKSY) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from BlackSky Technology's four analysts is for revenues of US$94m in 2023, which would reflect a substantial 44% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$106m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on BlackSky Technology, given the measurable cut to revenue estimates.

View our latest analysis for BlackSky Technology

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BlackSky Technology's past performance and to peers in the same industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 44% growth on an annualised basis. That is in line with its 48% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.8% per year. So it's pretty clear that BlackSky Technology is forecast to grow substantially faster than its industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for BlackSky Technology this year. Analysts also expect revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of BlackSky Technology going forwards.

Want to learn more? We have estimates for BlackSky Technology from its four analysts out until 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.